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BlackRock is among the top stock picks in a report from US brokerage analyst Michael Hecht, who is bullish on firms less exposed to equities given the more volatile market conditions of the credit crisis.

In the report, released on Friday, Hecht wrote: "Both sides of the business remain in favour - retail funds are still competitive against bank deposits; and institutional funds have higher yields than direct instruments in a falling rate environment."

The US funds industry had net inflows of $126bn in January and $130bn in February, according to Strategic Insight, a data provider that tracks about 32,000 US mutual funds, funds of funds and exchange-traded funds. That compared well with $55bn in December.

The overwhelming majority of that - $95bn in February - was in cash. However, equity funds also staged a recovery last month, pulling in a net $22bn. In January, $34.5bn had poured out of stock markets as retail investors took flight.

Hecht said asset managers were set to become less profitable due to declining equity markets forecasted for 2008 and 2009. He lowered his earnings per share predictions by an average 4%.

"Equity-sensitive asset managers like Janus Capital management, Franklin Resources & T Rowe Price are most impacted and we therefore maintain our Neutral ratings. We continue to prefer names more levered to money funds or long-term fixed income products," he wrote.

Hecht is a high-profile financials analyst in the US. Despite a recent wrong call on Bear Stearns shared by many of his rivals - he thought the shares could reach $92 - he has a solid record.